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First Plate-Processing Base in India Being Built From Value One Winter 2011-2012 No.35

Operations to Start in August 2012

In April 2011, Metal One and Keiyo Blanking Kogyo Co., Ltd. joined forces to establish India Metal One Steel Plate Processing Private Ltd. (IMOP), the first site in India for the melt cutting and processing of steel plates. The joint venture held a groundbreaking ceremony for the new plant, which will be located in the suburbs of Tada, Andhra Pradesh, in the Sri City special economic zone. Mr. Yuichi Tai, deputy COO of Business Division A; Mr. Koya Ishisaka, general manager of the Steel Plate Department; and Mr. Noriyuki Sato, president of Keiyo Blanking Kogyo, attended the ceremony. The plant is scheduled for completion in time for a production start of August this year.

IMOP will be the third joint overseas base for plate processing that Metal One and Keiyo Blanking Kogyo have set up, following Hangzhou Metal One Steel Plates Processing Co., Ltd. and Suzhou Metal One Steel Plates Processing Co., Ltd., both in China. The new venture will supply products such as melt-cut parts, secondary-processing items, and composite parts, primarily for Caterpillar Inc. and other construction machinery manufacturers. Its initial monthly processing capacity is expected to reach 2,000 tonnes.

Outline of the New Company
Name: India Metal One Steel Plate Processing Private Ltd.
Location: 4300 Spine South, Sri City DTZ, Andhra Pradesh, India
Representative: Takeshi Mitsui
Capitalization: 1.227 billion rupees (Metal One: 60 percent; Keiyo Blanking Kogyo: 40 percent)
Start of operation: Scheduled for August 2012
Number of employees: Approx. 200
Line of business: Processing of plates for construction machinery and sales of processed products
Processing capacity: 2,000 tonnes per month

India plans to invest approximately $1 trillion for infrastructure construction under its 12th five-year plan (which runs from 2012 to 2016), and accelerating demand for plates for resource development, infrastructure provision, and energy-related uses is anticipated from here on out. With this environment in mind, the new company will strive to capture business in fast-growing India using the plate melt-cutting, processing, and composite-parts production expertise and experience Metal One Group has developed in Japan and China to date.

(Steel Plate Department)


Managing Executive Officer Naomi Sakaguchi Speaks at Asia Steel Forum From Value One Winter 2011-2012 No.35

Theme: "Overseas Business Development by a Japanese Trading Company"

Asia Steel Forum 2011, organized by Tekko Shimbun Corporation and other bodies to promote discussions among Japanese, Chinese, and South Korean steel businesses, took place in Shanghai, China, from September 26 to 28. Mr. Naomi Sakaguchi, managing executive officer and chief regional officer for Metal One in China, spoke about overseas business development in a Japanese trading company.

Mr. Sakaguchi delivers his presentation.

During his presentation, Mr. Sakaguchi said: "Japanese trading companies started business investment in China in the late 1980s, much later than companies from the rest of Asia, Latin America, and elsewhere. However, Metal One now has business bases in seven cities in China, as well as 20 business investment affiliates. At the moment, we are either launching or constructing additional factories in five cities. Regarding our existing businesses here, we will be expanding those that are performing well and examining those that are experiencing difficulties. It is also essential to continue looking for the seeds of promising new businesses and for powerful partners."

The two primary goals of the Asia Steel Forum, now in its second year, are to create a network among Japanese, Chinese, and South Korean players in the steel industry, and to collect information. These are essential because the industry links between the three East Asian nations are growing stronger, as is the importance of steel business-related information in the Asian market, which accounts for 60 to 70 percent of global crude steel production.

(Global Strategy & Coordination Department)

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